An investor buys a house for £110,000. 2 months later, the investor spends £10,000 to renovate the house. One year after buying the house, the investor sells it for £157,000. If the interest rate is 5% p.a, what is the net present value of this cashflow? £ Enter an answer correct to £1. An investor invests £10,000,000 in a new factory, which takes a year to build. After construction is finished, the factory will generate an income of £142,000 monthly, received in arrears, for 13 years Compute the net present value of the investment project at an interest rate of 5% p.a. £ Enter an answer correct to £1,000.
An investor buys a house for £110,000. 2 months later, the investor spends £10,000 to renovate the house. One year after buying the house, the investor sells it for £157,000. If the interest rate is 5% p.a, what is the net present value of this cashflow? £ Enter an answer correct to £1. An investor invests £10,000,000 in a new factory, which takes a year to build. After construction is finished, the factory will generate an income of £142,000 monthly, received in arrears, for 13 years Compute the net present value of the investment project at an interest rate of 5% p.a. £ Enter an answer correct to £1,000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An investor buys a house for £110,000. 2 months later, the investor spends £10,000 to renovate the house.
One year after buying the house, the investor sells it for £157,000.
If the interest rate is 5% p.a, what is the net present value of this cashflow?
£
Enter an answer correct to £1.
An investor invests £10,000,000 in a new factory, which takes a year to build.
After construction is finished, the factory will generate an income of £142,000 monthly, received in arrears, for 13 years.
Compute the net present value of the investment project at an interest rate of 5% p.a.
£
Enter an answer correct to £1,000.
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